The Collaborative International Dictionary of English v.0.48:

Balefire \Bale"fire`\ (b[=a]l"f[imac]r), n. [AS. b[=ae]lf[=y]r
   the fire of the funeral pile; b[=ae]l fire, flame (akin to
   Icel. b[=a]l, OSlav. b[=e]l[u^], white, Gr. falo`s bright,
   white, Skr. bh[=a]la brightness) + f[=y]r, E. fire.]
   A signal fire; an alarm fire.
   [1913 Webster]

         Sweet Teviot! on thy silver tide
         The glaring balefires blaze no more.     --Sir W.
                                                  Scott.
   [1913 Webster]

WordNet (r) 3.0 (2006):

balefire
    n 1: a large outdoor fire that is lighted as a signal or in
         celebration [syn: bonfire, balefire]

Moby Thesaurus II by Grady Ward, 1.0:

111 Moby Thesaurus words for "balefire":
   Roman candle, aid to navigation, alarm, amber light, backfire,
   beacon, beacon fire, bell, bell buoy, blaze, blinker, blue peter,
   bonfire, buoy, burning ghat, campfire, caution light,
   cheerful fire, combustion, conflagration, corposant, cozy fire,
   crackling fire, crematory, death fire, fen fire, fire, flame,
   flare, flashing point, flicker, flickering flame, fog bell,
   fog signal, fog whistle, foghorn, forest fire, fox fire, funeral,
   funeral pyre, glance, go light, gong buoy, green light, heliograph,
   high sign, ignis fatuus, ignition, ingle,
   international alphabet flag, international numeral pennant, kick,
   lambent flame, leer, marker beacon, marshfire, nod, nudge,
   open fire, parachute flare, pilot flag, poke, police whistle,
   prairie fire, pyre, quarantine flag, radio beacon, raging fire,
   red flag, red light, rocket, sailing aid, sea of flames, semaphore,
   semaphore flag, semaphore telegraph, sheet of fire, sign, signal,
   signal beacon, signal bell, signal fire, signal flag, signal gong,
   signal gun, signal lamp, signal light, signal mast, signal post,
   signal rocket, signal shot, signal siren, signal tower,
   smudge fire, spar buoy, stop light, the nod, the wink,
   three-alarm fire, touch, traffic light, traffic signal,
   two-alarm fire, watch fire, white flag, wigwag, wigwag flag,
   wildfire, wink, witch fire, yellow flag